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Merchandise Meaning, Functions, and Types

By October 3, 2022December 3rd, 2022Articles, Articles - FOB

Merchandise is an item that is often used by people and companies when holding certain events as souvenirs or gifts. It is one of the most popular media that is used to support promotional activities, or even used as a source of income.

As one of the marketing elements, merchandise is the right choice in today’s era of digital marketing. You might see examples of it in many places such as markets, supermarkets and malls. People might also recognize merchandise as souvenirs.                                                                                                                                                                                                     

What is Merchandise?

Merchandise is often used as a souvenir or compliment when attending certain events. It is also used to attract people’s attention to buy something that is being offered or promoted. 

As a brand awareness, companies often used merchandise to remind customers about their product or business. It makes a lot of companies make merchandise and put their logo so it would be easily seen by customers. 

Companies put the logo of their brand as a media for promotion and advertising. It is usually made from goods that are used in everyday life so that people can use them.  

Function of Merchandise


Merchandise has an important role in marketing, because it can help the business. It has several functions including communication as a marketing strategy implemented in various media. Other function of it include: 

  • As a medium to introduce products to the public. 
  • As a product branding. 
  • To expand the network. 
  • To increase sales.
  • To attract visitors at an event. 
  • As a medium for promotion. 
  • As a souvenir. 

Type of Merchandise

Merchandise should be tailored to the needs and desires of the parties who need it. Therefore there are several types of it and companies who need to make them could choose from the option of a certain type. Here are some types of merchandise that could be an option. 

Daily Product Merchandise

This first type of merchandise is one of the most chosen ones by brands, because just like the names, daily products could be usable in everyday use. Some examples of daily product it are glass, mug, notebook, tote bag and other goods that could be used daily.  

Fashion Product Merchandise

Fashion product merchandise such as t-shirts, jackets, masks, aprons and other products are usually chosen by brand owners or businesses that are engaged in fashion. 

Unique Product Merchandise

These types of merchandise have their own uniqueness that attract business owners in using them, such as stickers, lightstick, and others. Brands that often use unique merchandise are usually targeting fans of music groups, so that the product can be used for concerts. 

Related article: Pengertian Strategi Pemasaran, Fungsi, Contoh dan Elemen

The Importance of Merchandising for Business

It is often used as a display for company name such as brand, logo and other profiles. Not only have impacts for big companies, but merchandise is also impactful for customers. Therefore merchandise is important for both the brand and the customers. 

Consumer Appeal

Some people buy a product just because they can get it as a bonus. Therefore it could be a habit offered by certain brands. Although customers might not be able to get a certain merchandise that they want because it is randomly given. Nevertheless, it shows that merchandise still has charm in customers’ eyes. 

Encourage Product Competitiveness Improvement 

Competition between markets for certain products might not provide pleasant conveniences. Therefore companies or businesses must be able to provide added value and be different than their competitors. In addition, it is one way to attract customer’s attention.  

Appreciation for Customer

When a business organizes a certain event or activity, they could give appreciation to customers by giving them merchandise. Giving products to customers could be an indirect appreciation for using their brands and products. 

Long-term Media Promotion

It could be a long-term media promotion for a business, because the product could be used for a long time. Consumers could easily remember the brand because they use the product for everyday use. It is often considered superior to other promotional media such as brochures. 

Merchandise that is Popular and Preferred by Consumers


There are various types of merchandise that could be chosen, along with the prices, the usage and the goals in promotion. Some companies order it in large quantities because it is cheaper. These are several types of it that are popularly used for promotion and preferred by consumers.  


When you order a shirt, you could choose between the collared or non-collared shirt, then add a brand logo or tagline on the shirt using screen printing. Shirts are commonly used for promotion or company events for it because it is very useful for consumers. 


Hats are also commonly used as merchandise and the models are adjusted to trends. For instance baseball caps are chosen because they are commonly used by consumers. Hats are often used for it because it is easy to place the logo or business brand in a place that stands out. 

Tote Bag

Many consumers preferred tote bags as a merchandise, moreover it the tote bag has an attractive design. In addition, tote bags are also durable and useful for everyday life. Materials that are often used for tote bags are canvas cloth because it is considered cheap.  

Mug or Tumbler 

Mugs or tumblers are mostly chosen as souvenirs. It is preferred because it is durable and could be used in everyday life. Mugs are one of the merchandise with high demand because of the good quality and attractive design.  


Stationary such as notepads and pens are often used as merchandise for companies with tight budgets because it is considered cheap. Companies give stationary to consumers as a gift because they were involved in a certain activity such as seminar or workshop.  

Key Chain

Key chains are one of the budget saving options for it. Not only because it is affordable, key chains are also durable and easy to fit a desired design. 

Travel Bag or Suitcase

Travel agency companies usually choose merchandise as executives. However it requires a large budget in purchasing suitcases or travel bags as merchandise. Sometimes, there is nothing wrong with choosing this type of it in order to give consumers happiness.  

Tips for Choosing Merchandise

Useful Items

The purpose of a brand creating it is not only to attract consumers in buying their product, but also to offer useful and durable items. It might cost higher but it came with good values too. 

Adjust to Target Consumers

When choosing a merchandise, it is important to consider your target consumers too. A business needs to analyze their target consumer needs. Therefore they can produce a large amount of it that is useful and needed by their target consumers. 

Quality Products

It is often used as a promotional medium for a business products or services. Although it is given freely, it is important to choose good quality products because higher quality merchandise could also help the brand earn successful promotion. 

Sustain Usage

One of the functions of it is to make consumers remember the brand continuously. Therefore it is important to choose a type of merchandise that could be used repeatedly for a long time. The longer consumers use the merchandise, the more embedded the image in their memory.

That is a brief explanation of merchandise, its definition, the function and also how to choose products as souvenirs. Sampoerna University and Faculty of Business provides further information and understanding on many topics in the business industry, including it that could be used to advance the company. 

Sampoerna University implements an international standard curriculum so that their students can learn theory and the best practice. Sampoerna University also provides comprehensive facilities and international quality lectures for all students. 

For further information regarding registration, curriculum, visits, and information about Sampoerna University, please fill in the data below.

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